VANCOUVER, Nov. 14, 2017 /CNW/ - HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (the "Company" or "HIVE") is pleased to announce that it has closed its previously announced bought deal private placement, including the exercise in full of the Underwriters' (as hereinafter defined) option. A total of 12,322,250 units (the "Units") were sold at a price of C$2.80 per Unit for aggregate gross proceeds of $34,502,300 (the "Offering"). The Offering was underwritten by a syndicate of underwriters led by GMP Securities L.P. and included Haywood Securities Inc., Eventus Capital Corp., and PI Financial Corp. (collectively, the "Underwriters"). Each Unit consists of one common share (a "Share") and one Share purchase warrant (a "Warrant"), with each Warrant entitling the holder to purchase one Share at a price of $3.90 until November 14, 2019. The Shares and the Warrants issued under the Offering are subject to a hold period expiring March 15, 2018. In connection with the Offering, the Underwriters received a cash commission equal to 6% of the gross proceeds raised in the Offering, excluding any proceeds raised from Genesis Mining Ltd. ("Genesis").
The net proceeds of the Offering are to be used to fund the second phase of construction at the digital currency mining data centre in Sweden (as described in more detail below) and for general working capital purposes. Genesis, an insider of the Company, subscribed for C$5,090,904 of the Offering, in accordance with the terms of an investor rights agreement between Genesis and the Company.
Proposed Listing of Warrants
The Company further announces it is taking steps to seek to list for trading on the TSX Venture Exchange (the "Exchange") the Warrants issued pursuant to the Offering (the "Listing"). The Company anticipates that the Listing will be effective on or after March 15, 2018 when the hold period expires. In preparation for the Listing, the Company has entered into a warrant indenture with Computershare Trust Company of Canada, as warrant agent.
Sweden Data Centre
On October 23, 2017 and October 25, 2017, HIVE entered into legally binding letter agreements with its largest shareholder Genesis under which the Company will finance the construction of the first and second phases of digital currency mining rigs at a data centre in Sweden (the "Sweden Data Centre"). Please refer to the Company's October 23, 2017 and October 25, 2017 news releases for more details.
The Sweden Data Centre will consist of newly constructed GPU mining rigs using the latest hardware, custom-designed by Genesis. Each phase is expected to represent approximately 6.8 MW of electricity consumption for a total of 13.6 MW in Sweden. HIVE and Genesis are evaluating expansion potential in Sweden as well as Iceland. In Iceland, HIVE's current operating facilities represent 3.8 MW in electricity consumption. Completion of the Sweden Data Centre is subject to a number of conditions, including but not limited to, Exchange approval.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. is a growth oriented, TSX.V-listed company building a bridge from the blockchain sector to traditional capital markets. HIVE is strategically partnered with Genesis Mining Ltd. to build the next generation of blockchain infrastructure. HIVE owns state-of-the-art GPU-based digital currency mining facilities in Iceland, which produce mined digital currency like Ethereum around the clock.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes information about construction and acquisition of the Sweden Data Centre; the expected electrical consumption at the Sweden Data Centre; the possible listing of the Warrants on the Exchange; the business goals and objectives of the Company, and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the construction, acquisition and operation of the Sweden Data Centre; the ongoing partnership with Genesis; the quantum of electrical consumption at the Sweden Data Centre may not materialize as currently anticipated; the digital currency market; the Company's ability to successfully mine digital currency; and other related risks as more fully set out in the Filing Statement of the Company dated September 13, 2017.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to complete the construction and acquisition of the Sweden Data Centre; the listing of the Warrants; the Company's ongoing partnership with Genesis; historical prices of digital currencies and the ability of the Company to mine digital currencies will be consistent with historical prices; and there will be no regulation or law that will prevent the Company from operating its business. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
SOURCE HIVE Blockchain Technologies Ltd.
For further information: Harry Pokrandt, Tel: (604) 609-6110